BIS FINDS BANK RATES SQUEEZE STABLECOINS

A new BIS working paper finds stablecoins and bank deposits are direct competitors for savers' cash. A one basis point rise in bank deposit rates cuts stablecoin market cap growth by roughly 3 percentage points over the following 10 weeks, against an average growth pace of 15% over the same window. Instrumental-variable estimates put that drag nearly three times larger than the baseline OLS result. The effect is stronger for Circle's USDC than for Tether's USDT, tying $CRCL more directly to the path of US interest rates than its rival.